SAP PREFI REVIEWER
Production Planning
Definition: Production Planning is the process of aligning demand with manufacturing capacity in creating production and procurement schedules for the finished products and component materials.
PP Organizational Structure
Definition: The PP organizational structure shares some organizational units with the previous modules.
Client
Definition: An independent environment in the system.
Company Code
Definition: The smallest organizational unit where a legal set of books can be maintained.
Plant
Definition: The operating area or branch within the company, such as manufacturing, distribution, purchasing, or maintenance facility.
Storage Location
Definition: Allows differentiation between the various stocks of material in a plant.
Work Center Locations
Definition: Define where and when the operation is performed.
PP Master Data
Definition: The PP Master Data has five (5) types: Material, Bill of Materials (BOM), Routing, Work Center, and Product Group.
Material Master
Definition: This master data contains all the information a company needs to manage a material.
Bill of Materials (BOM)
Definition: This master data lists the components that make up a product or assembly.
Item Category
Definition: It is an object that defines the items in a BOM according to criteria, such as the object type of the component.
Routing
Definition: It is the series of sequential steps or operations that must be carried out to produce a given product.
Control Key
Definition: Specifies how an operation or a sub-operation is processed in functions such as orders, costing, or capacity planning.
Activity Type
Definition: A unit in a controlling area that classifies the activities performed in a cost center.
Work Center
Definition: It is the location within a plant where Value-added work (operations or activities) is performed.
Product Group
Definition: It is aggregate planning that groups materials or other product groups (Product Families).
Forecasting
Definition: It is the foundation of a reliable Sales and Operations Planning (SOP).
Sales and Operations Planning (SOP)
Definition: Sales, Marketing, Manufacturing, Accounting, Human Resources, and Purchasing information came from this planning utilizing Intra-firm Collaboration.
Demand Management
Definition: It serves as the link between the Strategic Planning and Detailed Planning layers in Production Planning and Execution.
Master Production Scheduling (MPS)
Definition: It allows a company to distinguish planning methods between materials that strongly influence profit or use critical resources and those that do not.
Material Requirement Planning (MRP)
Definition: In MRP, the system calculates the net requirements while considering available warehouse stock and scheduled receipts from purchasing and production.
Planned Order
Definition: A request created in the planning run for material in the future.
Production Order
Definition: A request or instruction internally to produce a specific product at a specific time.
Purchase Order
Definition: A request or instruction to a vendor for a material or service at a specific time.
Production Proposal
Definition: (Not clearly defined in the text; contextually refers to the output of planning such as a planned order or production order.)
Capacity Planning
Definition: (Not defined with a standalone sentence; generally refers to determining production capacity needed to meet changing demands.)
Schedule and Release
Definition: Scheduling calculates the production dates and capacity requirements for all operations within an order.
Shop Floor Documents
Definition: These are printed upon release of the Production Order.
Goods Issue
Definition: When a production order is created, it references a BOM to determine the necessary components to produce the material.
Confirmations
Definition: These are used to monitor and track the progression of an order through its production cycle.
Goods Receipt
Definition: It is the acceptance of the confirmed quantity of output from the production order into stock.
Order Settlement
Definition: It consists of settling the actual costs incurred in the order to one or more receiver cost objects.
Financial Accounting (FI)
Definition: The SAP FI module is designed to collect transactional data that provides a foundation for preparing the standard portfolio of reports.
FI Organizational Structure
Definition: The FI organizational structure consists of the following organizational units.
Client
Definition: An independent environment in the system.
Company Code
Definition: The smallest organizational unit where a legal set of books can be maintained.
Chart of Accounts
Definition: A classification scheme consisting of a group of general ledger (G/L) accounts used by one or more company codes.
Credit Control Area
Definition: An organizational entity that grants and monitors a credit limit for customers.
Business Area
Definition: Represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.
FI Master Data
Definition: The FI Master Data has three (3) types: General Ledger (G/L) accounts, Customer Master Data, and Vendor Master Data.
General Ledger (G/L) Accounts
Definition: This master data is the data storage area created by the unique combination of Company Code and Chart of Account.
Customer and Vendor Accounts
Definition: Customer and vendor account balances are maintained in FI through fully integrated accounts receivable and accounts payable sub-ledgers.
Accounts Receivable Sub-ledger (FI-AR)
Definition: It is the information concerning customers who purchase the enterprise’s goods and services, such as sales and payments made.
Accounts Payable Sub-ledger (FI-AP)
Definition: It is the information concerning vendors from whom the enterprise purchases goods and services, such as purchases and payments.
FI Reporting
Definition: Here are the following processes involved in Financial Accounting.
Balance Sheet
Definition: It is the presentation of an organization’s assets, liabilities, and equity at a point in time.
Income Statement
Definition: It presents an organization’s revenues and expenses for a period, such as monthly, quarterly, or annually.
Statement of Cashflows
Definition: These are considered the associated changes, both inflows and outflows, that have occurred in cash, which can be viewed as the most important of all assets – over a given period such as monthly, quarterly, or annually.
Audit Trails
Definition: These allow an auditor to begin with an account balance on a financial statement and trace through the accounting records up to the transactions that support the account balance.
SAP Document Principle
Definition: It provides a solid and important framework for a strong internal control system, a law requirement for companies that operate in most countries.